Question

5. Weston Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Weston Company acquired the following trading securities: Date Company # of Shares Price per Share 8/15 X Company 1,500 $40 9/25 Y Company 1,250 25 9/30 Z Company 1,000 20 On November 10th, Weston Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values: Company FMV per Share X Company $45 Y Company 20 Z Company 30 What the total dollar values that Weston Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

Answer 1

Purchase	Date	Company	No. of share	price per share	Total Cost
	8/15	X Company	1,500	40	60,000
	9/25	Y Company	1,250	25	31,250
	9/30	Z Company	1,000	20	20,000
Sales	Date	Company	No. of share	price per share	Sales Value
	11/10	Y Company	1250	31	38,750
Fair Value	Company	Fair Value
	X Company	45
	Y Company	20
	Z Company	30
Unrealized gain or (loss)	Company	Total Cost	Total Fair Value
	X Company	60,000	67,500
	Z Company	20,000	30,000
		80,000	97,500

There will be unrealized gain on trading securities for 2018 of $ 17,500 ( 97,500 - 80,000 ).